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Europe Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • ID: 4773609
  • Report
  • April 2021
  • Region: Europe
  • 80 pages
  • Mordor Intelligence


  • Advantage OPCO LLC
  • Avis Budget Group Inc.
  • Enterprise Holdings Inc.
  • Europcar International
  • InterRent Car Rental
  • Peugeot Open-Europe
  • MORE
The European vehicle rental market studied was valued at over USD 12 billion in 2020, and it is expected to reach a value of over USD 20 billion by 2026, while registering a CAGR of more than 11% during the forecast period

Recent COVID-19 has disrupted the market growth. With lockdowns and travel restrictions, the demand for vehicle rentals has declined. From USD 16,894 million car rental revenue in 2019, the revenue declined to USD 8,072 million in 2020. This trend is also seen in the commercial vehicle rental segment as well.

However, The European vehicle rental market is displaying a decent recovery post severe COVID-19 pandemic outbreak in countries such as Italy, France, United Kingdom, Spain, etc.

Some of the major factors driving the growth of the passenger car rental market are the growth in the tourism industry (resulting in an increase in the number of tourists visiting the region per month) and growing business opportunities in the region.

The raise in commercial activities in the European region and increasing logistics sector is expected to help the commercial vehicle market growth in Europe during the forecasted period.

Short-term leasing is likely to continue to grow during the forecast period, as it helps European businesses meet the peaks and troughs of seasonal demand by providing suitable trucks for the job at short notice, without any penalties or commitments. This region has also seen an increase in the online sales channels owing to increasing internet and smartphone penetration.

Key Market Trends

Expansion Strategy by existing players is driving The Market Growth

The vehicle rental market in Europe is expected to exhibit a healthy growth rate owing to the increase in business and educational tourism, especially in the central and eastern European regions. The Eastern and Southern European countries are significantly spending on transport and business infrastructure development, which is attracting executives, investors, and professionals from across the world. This factor is driving the demand for car rental in the region.

Many market players are witnessing tie-ups with prominent airlines to provide vehicle rental services directly at the airport. In January 2020, Ryanair partnered with Rentalcars.com and integrated the car rental platform across the airline to provide an increased number of car rental bookings.

In January 2020, WeShare announced its expansion plans in the 7 new cities across Europe. WeShare plans to provide a fleet of 8,400 electric vehicles across Prague, Hamburg, Madrid, Paris, Munich, and Budapest. WeShare is partnering with Skoda services in Prague and Budapest, while Volkswagen will provide e-Golf1 and other vehicles in Germany, Spain, Italy, and France.

In December 2019, The Europcar Mobility Group subsidiary Ubeeqo recorded a 70% growth in users compared to the monthly average and a 60% increase in the number of reservations compared to November 2019. The round tripmodel of Ubeeqo has helped in boosting the active customer base of the brand by 53 percent. London, Paris, and Barcelona contributed the most to the growth of Ubeeqo. In June 2020, Ubeeqo restarted its vehicle renting operations in London by making available its fleet of car club vehicles.

A survey revealed that nearly 30% of Europeans would avoid public transport for travel and since, the lockdown has generated new enthusiasm for road trips, staycations, etc. the car rental market is expected to witness a healthy increase at both organized as well as locally based unorganized rental network.

The outbreak of the COVID-19 pandemic resulted in the negative growth of the already struggling automotive and vehicle rental industry. The outbreak has resulted in lockdowns and shutdowns, thereby halting the demand in the vehicle rental business. However, the vehicle rental market is expected to witness decent growth during the forecast period owing to the resuming of car purchases by car rental companies.

France is Leading European Vehicle Rental Market

France is the largest market for vehicle rental in the region, with increased demand for vehicles, for leisure and tourism purposes. The market has evolved over the years to emerge as one of the most developed markets in the region. According to a press conference with CNPA, (the car rental branch of the trade association of cars and related activities, in France), the number of car rental transactions has been increasing in the region.
The French vehicle rental market witnessed a severe impact during the peak of the COVID-19 pandemic outbreak in the geography. Many major car rental businesses struggled to generate revenue during the slowdown. Volkswagen is in talks with Paris-based Europcar Mobility Group for the acquisition of the rental car business.

Before COVID-19, the passenger vehicle rental market alone generated USD 1,699 million revenue in the country. Mainly through the tourism. With tourism rate growing more than 5% per annum in the country, it is expected to drive the rental market growth in France during the forecasted period.

However, France is also one of the few countries where the car rental market is booming owing to a favorable business and transportation ecosystem. Ubeeqo has decided its Paris fleet to 1000 cars in 2020.

Companies such as Hertz and Europcar have launched several programs to boost the market in the country. For instance, in September 2019, Hertz launched “Voyage a la Francaise” self-driving regional sensorial tours for tourists.

With lockdown and other travel restrictions reducing, and increase in the logistics sector, the vehicle rental market in France is expected to grow at high rate during the forecasted period.

Competitive Landscape

The European vehicle rental market is consolidated, dominated by major players, like Avis Budget Group Inc., Enterprise Holdings Inc., Europcar, The Hertz Corporation, and SIXT SE.

Europcar, a leading player in the European vehicle rental market, made a major move by launching a new brand – InterRent in 2013, and entered into a partnership with the US car rental provider, Advantage. The company also made a strategic acquisition of a majority stake in Ubeeqo, a French startup, specializing in car sharing.

The vehicle rental market in the region has undergone a lot of mergers and acquisitions, making the top-five players a significant contributor in the vehicle rental market. Most of the big-time US rental agencies have their presence in the market throughout Europe. These companies are among the most demanded ones in the region, due to their presence throughout Europe, and readily available vehicles, in nearly all the areas.

Reasons to Purchase this report:
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Note: Product cover images may vary from those shown


  • Advantage OPCO LLC
  • Avis Budget Group Inc.
  • Enterprise Holdings Inc.
  • Europcar International
  • InterRent Car Rental
  • Peugeot Open-Europe
  • MORE
1.1 Study Assumptions
1.2 Scope of the Study



4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry

5.1 Application Type
5.1.1 Leisure/Tourism
5.1.2 Business
5.2 Booking Type
5.2.1 Offline
5.2.2 Online
5.3 Rental Length Type
5.3.1 Short-term
5.3.2 Long-term
5.4 Geography
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Italy
5.4.5 Spain
5.4.6 Rest of Europe

6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Advantage OPCO LLC
6.2.2 Avis Budget Group Inc.
6.2.3 Enterprise Holdings Inc.
6.2.4 Europcar International
6.2.5 The Hertz Corporation
6.2.6 InterRent Car Rental
6.2.7 Peugeot Open-Europe
6.2.8 SIXT SE
6.2.9 Thrifty Car Rental Inc.

Note: Product cover images may vary from those shown


  • Advantage OPCO LLC
  • Avis Budget Group Inc.
  • Enterprise Holdings Inc.
  • Europcar International
  • The Hertz Corporation
  • InterRent Car Rental
  • Peugeot Open-Europe
  • Thrifty Car Rental Inc.
Note: Product cover images may vary from those shown